I will have a flight from LHR to BOS via FCO next Monday and feel very worried if I need to buy a new ticket now.
What should I do now?
Keep your fingers crossed and review the trip insurance policies of the credit card you used to book your flight. Oh and avoid checking luggage if you can just on the off chance something happens mid-flight.
PARIS: Air France-KLM on Monday gave Alitalia's unions a chance to reconsider their stance on its withdrawn takeover bid, which it insisted is the only chance to return the ailing Italian carrier to profit.
``It is now up to Alitalia, its employees and unions representing staff to say how they view the future of their airline,'' Air France-KLM said in a statement after a board meeting which approved Chairman Jean-Cyril Spinetta's reasons for breaking off talks last week.
I would say it's safe to say that AZ will stay in business al least during the prime summer holiday season. They have access to enough cash to keep operations going during the summer when the actually make money on some routes. But in the fall, with no buyers/investors in line, all bets are off..
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Quote:
Originally Posted by BER Flyer
I would say it's safe to say that AZ will stay in business al least during the prime summer holiday season. They have access to enough cash to keep operations going during the summer when the actually make money on some routes. But in the fall, with no buyers/investors in line, all bets are off..
Do you think so? I didn't think they had enough cash to last until the summer. I hope they do (I have several trips booked for June and July )
I would say it's safe to say that AZ will stay in business al least during the prime summer holiday season. They have access to enough cash to keep operations going during the summer when the actually make money on some routes. But in the fall, with no buyers/investors in line, all bets are off..
They have money, but they already owe about 10 times more than they have. So don't count on anything more than a few days if the deal is not made. It will shut down faster than many of you think!
Airlines (and other debtors) usually have to maintain a certain amount of cash on hand to fulfill convenances of their loans and leases. Once they dip below a certain amount, the airline really has no option but to close down (may not be able to get credit for fuel, airport fees, and other goods/services). That's what happened to Aloha, ATA and SkyBus in the U.S. this past week and what probably happened to AN, RG, SR and SN. Yes, a shutdown of AZ could come swiftly.
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They have money, but they already owe about 10 times more than they have. So don't count on anything more than a few days if the deal is not made. It will shut down faster than many of you think!
That does seem to be the trend, doesn't it. When a shutdown comes, it comes with little or no notice.
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According to Reueters, "Alitalia has about 1.37 billion euros of debt and is bleeding well over 1 million euros a day. Cash resources are around 160 million euros, Corriere della Sera newspaper said on Tuesday. But rising oil prices could shrink those finances further."
So give or take 160 days it would seem, they should be able to last through the peak summer travel season.
Maybe nobody wants to take action until after elections possibly? Although saving the airline would help a candidate's reputation instead of worsening it.
Still, the attitude of the unions is really taking its toll. Don't blame other airlines for not stepping up. It is like remarrying and having to deal with someone else's pesky, misbehaved children (the unions).
Could Alitalia go the way of Aloha and ATA? Think the airline and market is too big to be neglected. Either Italian government or EU would probably get more involved in a bail out if it got to that point.
According to Reueters, "Alitalia has about 1.37 billion euros of debt and is bleeding well over 1 million euros a day. Cash resources are around 160 million euros, Corriere della Sera newspaper said on Tuesday. But rising oil prices could shrink those finances further."
So give or take 160 days it would seem, they should be able to last through the peak summer travel season.
unless of course the suppliers/creditors get nervous and start demanding cash up front while there is still some cash - if AZ suddenly have to start paying for fuel and catering up front at overseas ports then things could change very quickly - likewise , if pax start avoiding AZ in big numbers then the revenues but not the costs will decrease which will increase the burn rate for the remaining money
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The above is only my opinion , it is entirely possible that I could be wrong ( it happened once before )
